Fees and where they go
The fees#
Fees depend on the log's fee set, chosen when the log is created.
| Action | Stable | Volatile |
|---|---|---|
| Wrap | 0.2% | 1% |
| Unwrap | 0.3% | 1% |
| Buy the log token in its pool | 0.3% | 0.5% |
| Sell the log token in its pool | 0.3% | 0.5% |
Both sets burn 15% of fees as log tokens. These fees are fixed on-chain and shown on every log page.
Where they go#
- 15% of every fee is burned as log tokens. That raises the backing of every log token still out there.
- Any partner fee comes off next. Most logs have none.
- The treasury share is 0%. Nothing goes to a treasury or the team.
- The remaining fee value is converted to $CHOP by the configured fee route.
- 20% of that $CHOP is burned.
- The other 80% goes to farmers, in proportion to the liquidity they have staked.
While a log has no staked liquidity, 100% of the $CHOP that would otherwise go to farmers is burned instead.
Each log's page shows its own split, read live from the contracts.
An example#
A Volatile log sees 1,600,000 USDG equivalent of trading in a day, plus 200,000 USDG equivalent of wraps and unwraps. USDG is used only to make the example easy to compare; each log can use its creator-selected paired token.
| USDG equivalent | |
|---|---|
| Trading fees (0.5%) | 8,000 |
| Wrap and unwrap fees (1%) | 2,000 |
| Total fees | 10,000 |
| Burned as log tokens (15%) | 1,500 |
| Treasury (0%) | 0 |
| Swapped for $CHOP | 8,500 |
| $CHOP burned (20% of that) | 1,700 |
| Paid to farmers (80%) | 6,800 |
This shows the value split. The number of $CHOP tokens received, burned and paid depends on $CHOP's market price. It assumes no partner fee and isn't a forecast.
Partner fees#
A log can send part of its fees to a partner, such as the project behind the wrapped token. It is 0% by default and at most 5%. The partner can lower that fee but can never raise it.